The Money Farm Team

How Does Increasing Interest Rates Help Inflation?

The rationale for raising rates is straightforward: higher borrowing costs can reduce inflation by reducing demand. When borrowing becomes more expensive, fewer people can afford homes and cars, and fewer firms can expand or purchase new machinery. Spending is decreasing (a trend we’re currently seeing). Companies require fewer employees when there is less activity. Because

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What Was GDP In 2020?

Retail and wholesale trade industries led the increase in private inventory investment. The largest contributor to retail was inventory investment by automobile dealers. Increases in both products and services contributed to the increase in exports. Consumer products, industrial supplies and materials, and foods, feeds, and beverages were the biggest contributions to the growth in goods

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What Happens To Interest Rates In A Recession Australia?

Interest rates serve as a vital link in the economy between savers and investors, as well as between finance and real-world activities. Liquid credit markets operate similarly to other forms of markets, following the rules of supply and demand. When an economy enters a recession, demand for liquidity rises while credit supply falls, leading to

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